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McKinsey Report Highlights Public-Private Infrastructure Funding Gap

McKinsey Report Highlights Public-Private Infrastructure Funding Gap - top government contractors - best government contracting event

infrastructureA McKinsey & Co. report projects that $57 trillion in funds will be needed to build and repair public infrastructure assets through 2030 but governments are unlikely to meet the global demand for infrastructure.

McKinsey’s Alastair Green, Tim Koller, and Robert Palter said they believe many public works projects fail to attract private funding due to an assumption that the return on such projects is often lower than the required capital.

“A more thorough evaluation of the economics “” especially around assumptions about lower government cost of capital “” could move more infrastructure deals forward,” the report authors wrote.

They recommended that public infrastructure owners develop a holistic approach to assess the pros and cons of government and industry financing.

Green, Koller and Palter added that private sector participation can help lower project costs because industry has a track record of meeting construction deadlines and managing potential cost risks.

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Written by Mary-Louise Hoffman

is a writer of news summaries about executive-level business activity in the government contracting sector. Her reports for ExecutiveBiz are focused on trends and events that drive the GovCon industry to include commercial technologies that private companies are developing for federal government use. She contributes news content to ExecutiveBiz’s sister sites GovCon Wire and ExecutiveGov.

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